With Indonesia being the largest Muslim-majority country and a key player in the global halal market, the latest mandatory halal regulation under BPJPH Law 33 is a pivotal moment for any company looking to export into Muslim-majority regions.
Here’s what exporters should know:
1. Legal Basis:
Indonesia’s halal certification mandate is essentially grounded in Law No. 33 of 2014, as amended by subsequent regulations, including Government Regulation No. 39 of 2021.
This law makes halal certification compulsory for all food, beverages, and related products circulating within Indonesia. By October 17, 2024, every company, whether local or international, must ensure their products comply with these halal standards.
2. A Shift to Halal Supply Chain:
The new regulations are not just about the end products; they require a comprehensive halal supply chain approach.
This means that every step of the production process, from sourcing raw materials to distribution, must adhere to halal principles.
Companies must ensure that their supply chain partners, including transportation and storage providers, are also halal certified.
3. Implications for International Exporters:
For international businesses, this law brings significant changes. Not only must the products themselves be halal certified, but the certification must be recognized by Indonesia’s Halal Product Assurance Organizing Body (BPJPH).
Failure to comply with these comprehensive requirements will result in products being denied entry into the Indonesian market.
4. Halal Industrial Zones:
Indonesia is developing halal industrial zones, such as the Modern Halal Valley near Jakarta, to support the halal ecosystem.
These zones simplify the certification process and cater to the growing demand for halal products in various sectors, including food, cosmetics, and pharmaceuticals.
5. Global Implications and Opportunities:
Indonesia’s mandatory halal certification is setting a precedent that other Muslim-majority countries may follow.
For businesses, this presents an opportunity not only in Indonesia but also in other markets that may adopt similar standards.
Products certified halal in Indonesia are likely to be accepted more readily in other Muslim-majority countries, potentially boosting exports and opening new markets.
Key Takeaways
- Compliance Deadline: October 17, 2024
- Scope: Mandatory for all food, beverages, and related products
- Supply Chain Focus: Requires halal certification for all supply chain partners
- Opportunities: Potential for expanded market access in other Muslim-majority countries
Consult AHF for Indonesia Halal Certification!
The countdown to October 17, 2024, the steps taken now will determine how companies operate in one of the world’s most significant halal markets and beyond.
Interested to learn more about this? Get in touch with AHF for a FREE consultation on Halal certification for exports to Indonesia!
Backed by over more than 50+ years of combined experience in global halal standards and practices, the Halal Foundation Editorial Team is dedicated to delivering insightful, accurate, and practical content that empowers businesses and consumers to navigate the halal landscape.
